How Investing in the Stock Market Saps Your Wealth

[Account Closed]

Today, in Sept 2018 the Stock Market is at 28,000. An all time high. The average wage is $26 per hour. It takes 1,077 work hours to “buy the market”. That is, if you buy one share each of the stocks of the Dow, the cost would be $28,000 and takes 1,077 work hours or 27 work weeks or 6 ½ work months of your time for $28,000. And that is before any profit you may hope for. That is cash out, not profit.

In 1971 doing the same would take you 250 work hours. It now takes you 4 times as much of your time. So in essence the Stock Market is ¼ of what it should be for your investment to make sense and for you to stay even.

When the Stock Market crashes, and it does crash from time to time, it crashes hard and you have to start the clock all over again. And then, there are the broker fees.

However, In real estate, last week I bought a 3 bed 2 bath fully remodeled house for $9,000 in Phoenix AZ.

It shows a value of $270,000 on Redfin. I took over the financing on a Subject To. There were no realtor fees.

I took over the note of $185,000 and gave the seller $9,000.

I have a $270,000 asset, minus $185,000 liability (the underlying note) – minus my $9,000 and I am ahead $76,000.

It took me about 12 hours of work. I then turn around and sell them Turnkey to Investors. That takes another 5 hours of work. So, I am into the property for about 17 hours of work. Do the math. The investor gets $25,000 as an Option from the Tenant Buyer. Another win. That is Capital at work.

It is not distressed. It's not condemned or toxic. It is not in foreclosure. It is not an HOA sale. It is not an REO. It is not a Tax Lien. None of that. It isn't on the MLS. It isn't a Condo. It isn't a Town Home. It isn't a Mobile.

It is a beautiful, safe, ready to live in single family property.

The Stock Market is for people who don’t value their time or are bad at math, or both.